Court to Decide BHV's Future

The Paris Economic Activities Court (TAE) will decide on Monday whether to approve the judicial restructuring of BHV, a historic Parisian department store chain. The court held a closed-door hearing lasting two hours and 30 minutes to examine the company’s financial situation, according to an AFP journalist.

BHV's Financial Situation Unclear

The management of BHV initially requested judicial restructuring to "preserve the business and employment" and "secure its recovery plan." However, it later admitted the company was in bankruptcy, contradicting earlier claims it was not in payment default. The decision to seek the TAE in Paris was linked to a creditor assignment procedure that had been ongoing for several months.

Legal Scrutiny and Allegations

The hearing was requested by the prosecutor, who had received a report from the labor inspection about potential safety violations and non-payment of social contributions. The mayor of Paris Centre, Ariel Weil, had also informed the prosecutor of these issues, according to the lawyer for the staff representatives, Stéphane Kadri.

BHV's Historic Stores at Stake

The company’s president, Karl-Stéphane Cottendin, appeared visibly concerned before the hearing. The restructuring would involve the SEGM BHV, which includes the historic Bazar de l'Hôtel de Ville, a Parisian institution for 170 years, and the BHV Parly 2 in the Yvelines. The chain currently employs 700 people.

Restructuring Process Explained

If the court approves the restructuring, it would begin a six-month observation period, which could be extended. During this time, the court would assess whether the company can be restructured, sold, or liquidated. The outcome would determine the future of the stores and their employees.

Recent Ownership and Challenges

BHV was sold at a loss in June by SGM, the company of entrepreneur Frédéric Merlin. Since then, the chain has faced ongoing challenges, including a recovery plan for BHV Marais that struggled with cash flow due to disputes with the Canadian fund Brookfield, which owns the building. Deputy mayor Nicolas Bonnet-Oulaldj urged that employees should not bear the brunt of poor management, while staff representatives called for a new, well-financed ownership plan to save jobs.